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Liangjiang New Area has launched a new strategy to build a new energy vehicle industry cluster, said an official of the district's management committee.

The district founded on June 19 a new energy vehicle joint venture with Sokon and Lifan, two Chinese finished vehicle companies, in a move to follow the global auto industry development trend. Previously, Lifan raised 5.2 billion yuan ($837.2 million) from the capital market to develop new energy vehicles.

The joint project involves 500 million yuan in registered capital and integrates business in finished new energy vehicle manufacturing, lithium battery, electronic control, dynamo and car networking. The joint venture will establish a finance leasing company and contribute to a development fund for new energy vehicle.

The joint venture will also build a factory for new energy vehicle manufacturing and offer adequate funds for related operating companies, said the official.

In fact, the project is part of the new district's efforts to boost strategic emerging industry through financial approach. The district has integrated financial and industrial capitals by setting up finance leasing companies and industrial guidance fund before, and has established strategic emerging industry development fund worth 20 billion yuan. It has successfully boosted the development of robot, general aviation, cloud computing, display screen, and integrated circuit. The same thing happens to new energy vehicle industry this time.

Lifan is a large-scale private business that integrates scientific R&D, engine, automobile manufacturing and sales (including exports), as well as finance, securities and real estate. The company has been named one of the "Top 500" Chinese enterprises for ten years and topped the list of exporters in Chongqing for years.

Sokon engages in R&D, manufacturing and sales of minicar and related engine and parts.

Edited by Shahnawaz Akhtar